Carney, 59, succeeds Justin Trudeau, whose relationship with Trump was often strained. Speaking after his swearing-in, Carney acknowledged Trump’s priorities and indicated a willingness to engage constructively.
“We respect President Trump—he has put some very important issues at the top of his agenda. We understand his agenda,” he told reporters, adding that his past interactions with Trump in international meetings had given him insight into working with the US administration.
“In many respects, part of my experience overlaps with that of the President—we’re both looking out for our countries. But he knows, and I know from long experience, that we can find mutual solutions that work for both,” Carney said.
While he had no immediate plans to speak with Trump, Carney dismissed discussions of U.S. annexation of Canada as “crazy.”
Cabinet reshuffle focused on US relations
Carney restructured his 24-member cabinet with a focus on managing relations with Washington, reducing the number of ministerial positions from Trudeau’s administration.
Canada, meet your new cabinet. We’ve built a smaller, focused, and experienced team that is made to meet this moment. pic.twitter.com/30ynczRnyh
— Mark Carney (@MarkJCarney) March 14, 2025
Dominic LeBlanc, previously finance minister, moved to the international trade portfolio, while François-Philippe Champagne, the former innovation minister, took over as finance minister. Mélanie Joly retained her role as foreign minister.
Carbon tax repealed and upcoming elections
With a federal election required by October 20, the Liberal Party faces a challenge from the opposition Conservatives, who have long opposed Trudeau’s consumer carbon tax. Carney, who pledged to abolish the tax, signed an order repealing it during his first cabinet meeting.
“This will make a difference to hard-pressed Canadians,” he told ministers.
Election prospects and political landscape
Carney won the Liberal leadership race decisively on Sunday, replacing Trudeau after more than nine years in office. His rise followed the resignation of former finance minister Chrystia Freeland last December, which contributed to Trudeau’s departure. Freeland has now been appointed transport minister.
Carney plans to visit London and Paris next week, as Canada works to strengthen ties with European allies amid tensions with the U.S.
His newly formed cabinet may have limited time in office, as Liberal insiders suggest he is preparing to call a snap election within the next two weeks. If he does not, opposition parties have indicated they will attempt to bring down the minority government in a confidence vote by the end of March.
Once an election is called, Carney’s ability to make major political decisions will be constrained by convention.
Current polling indicates a close contest between the Liberals and Conservatives, with neither party projected to secure a majority government. The Conservatives previously held a significant lead, largely due to concerns over inflation and housing affordability.
